Search found 2635 matches

by GammaPoint
Sun Mar 17, 2024 10:47 am
Forum: Investing - Theory, News & General
Topic: Vanguard research: Asset location for equity - October 2023
Replies: 4
Views: 561

Re: Vanguard research: Asset location for equity - October 2023

Skimming the Vanguard article, it seems like they might be using 15% foreign withholding.
We factor in the common
foreign withholding rate of 15%.
If this is meant to be compared with the FTC that one gets from funds, that seems pretty optimistic. Last year VXUS's FTC was 7%. As such, their numbers are going to be skewed heavily towards placing in taxable.
by GammaPoint
Sun Mar 17, 2024 10:39 am
Forum: Investing - Theory, News & General
Topic: Vanguard research: Asset location for equity - October 2023
Replies: 4
Views: 561

Re: Vanguard research: Asset location for equity - October 2023

I'm learned recently that these simples rules are fine for the average person, but you really need to compute your own tax situation to figure out what's right for you. For example, VXUS had 58.93% QDI last year. If we assume someone is at the 15% QDI rate, then the breakeven point on the % taxation of dividends in comparison to a US fund with 100% QDI would be a marginal tax rate of 31.5%, a marginal rate some might easily hit. Of course, some simplifications above. As the marginal rate gets higher your QDI gets higher, the NIT starts to bite, etc., and everyone has different state tax and rules around that. But that gets to the general idea. And that's just equivalence on the % of dividends taxed, if you then multiply that by the typicall...
by GammaPoint
Mon Mar 11, 2024 1:27 pm
Forum: Investing - Theory, News & General
Topic: Should the QDI advantage of AVUV over VBR be considered robust?
Replies: 13
Views: 940

Re: Should the QDI advantage of AVUV over VBR be considered robust?

troysapp wrote: Mon Mar 11, 2024 12:41 pm I too suspect that much of the nonqualified dividends relate to REITs as approximately 9% of VBRs holdings are REITs.
Plausible theory. VNQ has about twice the dividend of VBR as a whole, so maybe (napkin math) 9% REIT holdings could translate to 18% or so nonqualified dividends, which gets us close to that 74% figure (26% reduction from 100%).
by GammaPoint
Mon Mar 11, 2024 11:17 am
Forum: Investing - Theory, News & General
Topic: Should the QDI advantage of AVUV over VBR be considered robust?
Replies: 13
Views: 940

Re: Should the QDI advantage of AVUV over VBR be considered robust?

One factor is that VBR has an exposure to real estate; it appears not to be the case with AVUV They track different indexes Good point on the real estate, I suppose that could be part of the story. And yeah, totally aware that VBR and AVUV aren't purporting to do the same thing, but curious if the lower QDI of VBR is (if not explained fully by real estate) caused by other factors (such as being passive) or what the reason is. Broadly speaking though, the difference in qualified dividends between something like VTI, VEA, and VWO** is not explained by real estate exposure, so also just curious on what precisely is the difference. ** not quoted here, but order being very qualified / mostly qualified / and less than half qualified, respectively.
by GammaPoint
Mon Mar 11, 2024 10:44 am
Forum: Investing - Theory, News & General
Topic: Should the QDI advantage of AVUV over VBR be considered robust?
Replies: 13
Views: 940

Should the QDI advantage of AVUV over VBR be considered robust?

In 2023, AVUV had 100% qualified dividends compared to VBR's 74.41%. In 2022, it was (I think) again 100% qualified for AVUV and it was 82.35% qualified for VBR.

Three questions:

(1) Should one expect this advantage to be robust?
(2) If so, why? For an ETF asset manager, what needs to be done internally to keep QDI high, and why is AVUV able to do it but VBR not?
(3) If #2 is answerable, what aspects of what makes dividends qualified makes international ETFs have lower QDI (including Avantis, when comparing to their domestic ETFs)?
by GammaPoint
Mon Mar 11, 2024 10:24 am
Forum: Investing - Theory, News & General
Topic: 2023 tax costs for value ETFs
Replies: 19
Views: 2451

Re: 2023 tax costs for value ETFs

grabiner wrote: Sun Mar 10, 2024 9:11 pm This has rarely been possible, but it has previously been a point of discussion: Getting deeper small-cap value exposure in taxable is almost free in 2017 showed that the all-in cost of RZV (Guggenheim S&P 600 Pure Value) was about the same as Vanguard's ETFs, and it held much smaller caps and deeper value exposure. If DFA can keep its tax advantage, then the DFA foreign stock factor ETFs will be better than the Avantis ETFs in a taxable account even though DFA's ETFs are slightly more expensive.
Appreciate the response, grabiner and for the link to the previous discussion. Thanks for taking the time to educate me.
by GammaPoint
Sun Mar 10, 2024 12:20 pm
Forum: Investing - Theory, News & General
Topic: 2023 tax costs for value ETFs
Replies: 19
Views: 2451

Re: 2023 tax costs for value ETFs

Also, I'm curious if anyone has insight into the qualified differences between VBR and AVUV. AVUV has 100% qualified dividends, whereas VBR has only 74%. Is this because an active fund like AVUV can manage its holdings so as to make its dividends qualified, whereas VBR just has to track the index? At a high marginal tax rate then even a more expensive active fund might easily pay for itself because of the better tax efficiency (again, sounds like heresy from what we used to say on these forums, though I suppose maybe this is just due to the details of the ETF structure).
by GammaPoint
Sun Mar 10, 2024 12:09 pm
Forum: Investing - Theory, News & General
Topic: 2023 tax costs for value ETFs
Replies: 19
Views: 2451

Re: 2023 tax costs for value ETFs

Yes, this is correct with 2023 numbers.. When international yields are twice US yields, it is more tax-efficient for most investors to hold US stock in taxable. In many tax brackets, this works even though VFVA has a higher dividend yield. In 2020, VEA was more tax efficient, but that was a one-time anomaly because many foreign stocks cut their dividends in 2020. Thanks for the confirmation, grabiner. I've seen a number of posts of yours throughout the forums and it seems like a lot has changed since I first started here 15 years ago. We used to be worried about factor and active funds having turnover and leading to capital gains distributions. Now, it seems that (outside of some rare historical exceptions) we've nearly abandoned that fear...
by GammaPoint
Sat Mar 09, 2024 7:03 pm
Forum: Investing - Theory, News & General
Topic: 2023 tax costs for value ETFs
Replies: 19
Views: 2451

Re: 2023 tax costs for value ETFs

grabiner, thanks so much for this post (and for the similar posts from prior years). It's got me thinking a lot harder about my tax costs now that I'm in the 32% marginal bracket. In particular, the thought that funds like VEA might almost be as tax-inefficient for me than something like VFVA is not something that I was remotely thinking about until now. As I understand, VEA has 73% qualified dividends with a 6% FTC. So, if I understand the math, then 0.73 * 0.188 + (0.27 * 0.358 - 0.06) = 0.1739 where I used a 15% QDI bracket with a 32% marginal with a 3.8% NIIT tax. That's a 17.39% of its dividend yield tax cost. Whereas, with VFVA, I'd have the math 100 * 0.188 = 0.188 So a higher multiplier, but then VFVA would get multiplied by a small...
by GammaPoint
Sat Mar 09, 2024 6:31 pm
Forum: Personal Investments
Topic: Vanguard Fund Tax Analysis & Efficiency (2018 to 2023)
Replies: 15
Views: 2286

Re: Vanguard Fund Tax Analysis & Efficiency (2018 to 2023)

This was such a useful spreadsheet. Thanks so much for posting!
by GammaPoint
Thu Mar 07, 2024 3:32 pm
Forum: Investing - Theory, News & General
Topic: Emerging Markets Stocks have been a complete disaster
Replies: 170
Views: 15852

Re: Emerging Markets Stocks have been a complete disaster

nisiprius wrote: Thu Mar 07, 2024 3:12 pm In my (arrogant) opinion the disaster is not "emerging market stocks," but "significantly overweighting emerging markets stocks." Even in the Vanguard Total World Index Fund, or any other globally cap-weighted portfolio, emerging markets are 5.63% of the portfolio--0.28% in Europe Emerging, 5.34% in Asia Emerging. Call it 6%.
That's not true though, is it? Just take a look at VT's exposure to EM. It's 9.5%.
by GammaPoint
Thu Mar 07, 2024 3:17 pm
Forum: Investing - Theory, News & General
Topic: Emerging Markets Stocks have been a complete disaster
Replies: 170
Views: 15852

Re: Emerging Markets Stocks have been a complete disaster

KBR wrote: Thu Mar 07, 2024 3:10 pm
The climate risk that the temperature might possibly be a half degree warmer? I'm not worried.
I wouldn't be worried about half a degree warmer either. Unfortunately, by 2050 it's looking more like 1.5 degrees celsius or worse, which is more like 3 degrees fahrenheit. By 2100 we're talking closer to 7 degrees Fahrenheit.
by GammaPoint
Thu Mar 07, 2024 1:47 pm
Forum: Investing - Theory, News & General
Topic: Emerging Markets Stocks have been a complete disaster
Replies: 170
Views: 15852

Re: Emerging Markets Stocks have been a complete disaster

In the past I've had some slight overweight to EM, though I've scaled that back to market weight for the time being. On one hand, I can imagine those economies growing quickly and having investments in those regions yielding more than developed markets (as most projections suggest). On the other hand, I'm both worried about the political risks of those regions (as others have pointed out) but also particularly worried about the climate risks. What does, for example, India look like 50 years from now if climate change continues to accelerate? Can it be an economic powerhouse if it's too hot to live there? I'm very tempted to reduce EM below market weight primarily for the climate risks, but I haven't done that yet and feel like I need to und...
by GammaPoint
Wed Mar 06, 2024 7:19 pm
Forum: Personal Investments
Topic: Are factors dead?
Replies: 84
Views: 10773

Re: Are factors dead?

HanSolo wrote: Wed Mar 06, 2024 7:14 pm I hold a total market fund. If LCG (or SCV, etc.) experiences a massive gain, my total market fund will benefit. (I did not say I'll gain an advantage in comparison with other investors, as I'm not interested in the horse race aspect of it.)

If you disagree, it must be something about wording rather than substance.
Nope, all in agreement here :)
by GammaPoint
Wed Mar 06, 2024 6:58 pm
Forum: Personal Investments
Topic: Are factors dead?
Replies: 84
Views: 10773

Re: Are factors dead?

HanSolo wrote: Wed Mar 06, 2024 6:36 pm I don't think there's a controversy. If some people think, say, LCG has an advantage, or SCV has an advantage, then one still captures those advantages by holding the total market. The point is that a tilt is not needed to get the benefit.
I disagree with this. Whatever factors one believes in, the advantage is defined relative to the total market. Those that just hold the total market won't get those advantages should they exist.
HanSolo wrote: Wed Mar 06, 2024 6:36 pm Either way, nothing is wrong.
This I agree with. No one knows what the future holds and no one is wrong in holding an asset allocation that they are comfortable with.
by GammaPoint
Wed Mar 06, 2024 1:03 pm
Forum: Personal Investments
Topic: Are factors dead?
Replies: 84
Views: 10773

Re: Are factors dead?

bertilak wrote: Wed Mar 06, 2024 12:31 pm I never say I am tilted towards anything. I do have an asset allocation that is heavier in stocks than bonds. What is the purpose of tilting? Is it the same as having an AA? If so, then almost everyone tilts, rendering the term less than useful.
Since it sounded like you were saying you index to the market and that "you tilt towards every factor", it sounded to me that you were claiming to either tilt (to every factor) or to render the term "tilt" meaningless when it clearly has meaning. I think it's fine to say that you tilt towards equities on your equity/bond split and then say you don't tilt within equities. I just don't think saying "tilt towards everything" clarifies the conversation any.
by GammaPoint
Wed Mar 06, 2024 12:26 pm
Forum: Personal Investments
Topic: Are factors dead?
Replies: 84
Views: 10773

Re: Are factors dead?

bertilak wrote: Wed Mar 06, 2024 10:38 am That applies to every "factor" there is, so a total stock portfolio tilts towards every factor.
Do you hold market weight between stocks and bonds and then say you're tilted towards market beta in the same way?
by GammaPoint
Wed Mar 06, 2024 9:37 am
Forum: Personal Investments
Topic: Are factors dead?
Replies: 84
Views: 10773

Re: Are factors dead?

As I understand it, Asness & al. acknowledged was that if you selected by nothing other than size--as was and still is done by DFSCX, by the Vanguard Small-cap Index Fund, and others--the size factor was indeed dead, or close to dead. However, they said that this was the result selecting only on size, you included many stocks of extremely low quality. If you removed them the "junk" stocks, a robust size effect emerged. I'm aware of the paper, although I'm curious how this research has affected the outlook among BH tilters. When I first started around here, lots of people were holding VSS for some international small cap exposure as not a lot of low-cost funds were really available at the time for doing anything much more. For...
by GammaPoint
Mon Mar 04, 2024 5:55 pm
Forum: Personal Consumer Issues
Topic: A person shouldn't go through life without...
Replies: 6
Views: 1264

Re: A person shouldn't go through life without...

A neti pot. Makes being sick half as bad as it normally is.
by GammaPoint
Sun Aug 06, 2023 8:24 am
Forum: Personal Consumer Issues
Topic: Anyone getting passport cards?
Replies: 99
Views: 14319

Re: Anyone getting passport cards?

At my last passport renewal I got the card too. At the time, I didn't think about it too much and thought maybe it'd be worth $30 for something down the line. Haven't used it yet. That said, just started getting TSA precheck and did that in my full legal name (which is what's on my passport and passport card). However, my driver's license is in the shortened version of my first name. I doubt the mismatch between those is going to cause me any problems, but as I try to harmonize those by forcing my driver's license to go to my full first name, it's nice to have the passport card in the wallet in case the TSA agent has an issue. The other option would be for me to go ahead and get my REAL ID in WA and at the same time try to get my first name...
by GammaPoint
Fri Apr 28, 2023 5:55 pm
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6651
Views: 1203820

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Interested in the 0.9% fixed rate. Suppose with the low variable rate (current t-bills much higher yielding) no rush to do this right away but instead can wait closer to the best rate announcement?
by GammaPoint
Thu Mar 23, 2023 11:05 am
Forum: Personal Finance (Not Investing)
Topic: Overcontribution to HSA due to mid-year job switch
Replies: 8
Views: 864

Re: Overcontribution to HSA due to mid-year job switch

Thank you all for the help. I feel like I understand the path forward now.
by GammaPoint
Wed Mar 22, 2023 10:29 pm
Forum: Personal Finance (Not Investing)
Topic: Overcontribution to HSA due to mid-year job switch
Replies: 8
Views: 864

Re: Overcontribution to HSA due to mid-year job switch

If done via payroll I believe you add this via other income (the IRS instructions lay this all out BTW). Second, you pay income tax on any associated earnings in the year withdrawn. Ah, thank you for this. I found the relevant section in the IRS documentation: Excess contributions. You will have excess contributions if the contributions to your HSA for the year are greater than the limits discussed earlier. Excess contributions aren’t deductible. Excess contributions made by your employer are included in your gross income. If the excess contribution isn’t included in box 1 of Form W-2, you must report the excess as “Other income” on your tax return. Emphasis mine. So it seems all I need to do it add it as other income (and I don't, for exa...
by GammaPoint
Wed Mar 22, 2023 6:50 pm
Forum: Personal Finance (Not Investing)
Topic: Overcontribution to HSA due to mid-year job switch
Replies: 8
Views: 864

Re: Overcontribution to HSA due to mid-year job switch

I did call my HSA custodian and talked to two people. Both of them were fairly unhelpful (one of them telling me that since I was under the $7300 limit that there was no problem, and I had to explain that the limit was pro-rata by month). In any case, I have the form for removal of excess contributions filled out. The only part that I'm still confused about is the tax impact of this. I expected that by removing these excess contributions, I would realize more income for 2022 and thus my tax liability would go up. However, unless FreeTaxUSA did something to take this into account from the get-go, it seemed like my tax liability stayed the same even when I answered that I would remove the $696 from my HSA. Should my current tax liability not ...
by GammaPoint
Wed Mar 22, 2023 6:46 pm
Forum: Personal Finance (Not Investing)
Topic: Overcontribution to HSA due to mid-year job switch
Replies: 8
Views: 864

Re: Overcontribution to HSA due to mid-year job switch

Nate79 wrote: Wed Mar 22, 2023 6:19 pm Did you have eligible coverage on Aug 1st?
No, starting August 1st I got on my new employer plan, which is a PPO.
by GammaPoint
Wed Mar 22, 2023 5:28 pm
Forum: Personal Finance (Not Investing)
Topic: Overcontribution to HSA due to mid-year job switch
Replies: 8
Views: 864

Overcontribution to HSA due to mid-year job switch

I started the year with an employer which front-loaded my HSA with a $1200 employer contribution. I then proceeded to make per-paycheck contributions which put me on track to max out the HSA for the year. However, I then changed jobs in August and so I believe that employer contribution was more than allowed (instead only about 7/12 of that contribution was allowed), leaving me an overcontribution of about $700 (FreeTaxUSA says $696). FreeTaxUSA says: You may withdraw some or all of Brad's 2022 excess contributions and they will be treated as if they had not been contributed if: (1) You make the withdrawal by the due date, including extensions, of your tax return, and (2) You also withdraw any income earned on the withdrawn contributions an...
by GammaPoint
Tue Nov 15, 2022 4:24 pm
Forum: Personal Investments
Topic: Moving rollover IRA to 401k to set up for backdoor Roth [double checking]
Replies: 4
Views: 461

Moving rollover IRA to 401k to set up for backdoor Roth [double checking]

This year I'll need to do my first backdoor Roth (been doing mega backdoor for years now but that option is no longer available to me at my new job). I have a small rollover IRA at Vanguard (~$50k in value) that I plan to rollover to my employer 401k so that I can do the backdoor Roth without triggering the pro-rata rule. Two questions: (1) The custodian of my 401k says that they will begin the process by calling Vanguard while I'm on the line. For those that have done this before, will I save myself any headache by selling the stocks/ETFs first (and does the settlement period for that cash need to pass first before Vanguard can start the rollover?). (2) Am I correct to believe that as soon as my rollover IRA is empty, I could fund it with ...
by GammaPoint
Mon Dec 06, 2021 11:25 am
Forum: Investing - Theory, News & General
Topic: Locked and merged threads on proposed budget, Roth, etc.
Replies: 279
Views: 33750

Re: After-tax usage for company match if backdoor goes away

AllMostThere wrote: Mon Dec 06, 2021 11:15 am Good honest question but will not be long until this thread gets locked! :x
Thanks for your comments. I hope this doesn't get locked right away because I'm not trying to optimize over hypotheticals. Even before the end of 2021 and the tax legislation is passed or not passed, I will have to decide on my beginning of 2022 contribution amounts (which I'll need to make sometime around the 20s of December for my first January paycheck). So if we get into a place where this isn't decided by then I'll need to make some choices, and those choices will be informed by what my strategy should be if it ends up passing. I can't simply wait to see if it passes first, which would obviously be more ideal.
by GammaPoint
Mon Dec 06, 2021 11:07 am
Forum: Investing - Theory, News & General
Topic: Locked and merged threads on proposed budget, Roth, etc.
Replies: 279
Views: 33750

After-tax usage for company match if backdoor goes away

[Thread merged into here --admin LadyGeek] I'm eligible for 2 401k plans, one which I'm fully vested in and one which I am 0% vested and won't be vested for another 3 years. Both offer small company matches on a per paycheck basis. Up to now I've been maxing out the normal 401k contributions as one and doing mega backdoor at the other, and in doing so have been fully taking advantage of the matches. However, if the mega backdoor option goes away, I have a couple different options as to how I might handle it. (1) I could contribute no after-tax contribution at all and split my $20,500 individual contribution between the two employers. This would allow me to take advantage of both matches (both matches sum to a little less than $20k/year). H...
by GammaPoint
Sat Nov 20, 2021 8:36 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance Mega Thread
Replies: 12862
Views: 1265741

Re: Refinance Mega Thread

vtg wrote: Sat Nov 20, 2021 8:21 pm As a fellow recent SLS transfer, I will just say - buckle up
Uh oh, anything in particular I should be on the watch for?
by GammaPoint
Fri Nov 19, 2021 5:59 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance Mega Thread
Replies: 12862
Views: 1265741

Re: Refinance Mega Thread

Did a refinance with Better last month and everything went smoothly. Just received notice that my loan servicing was transferred from TMS to Specialized Loan Service. SLS has terrible reviews online so I hope I'm not in for any problems... :-|
by GammaPoint
Wed Sep 08, 2021 7:58 pm
Forum: Personal Finance (Not Investing)
Topic: Mega backdoor at two employers
Replies: 1
Views: 318

Mega backdoor at two employers

If I'm employed at two different employers, each which have their own 401k plans, how does this work with regards to mega backdoor? I understand that the personal cap limit of 19.5k is shared, but as I understand the overall limit of 58k is not. However, if it's me putting in after-tax contributions rather than my employer putting in before-tax contributions, does it count against me? In other words, if my employers contributed 10k to my account each, would I be able to do 19.5k in pre-tax at one and then 58-19.5k-10k in mega backdoor at employer 1 and 58 - 10k in mega backdoor at employer 2?
by GammaPoint
Mon Aug 16, 2021 9:52 am
Forum: Investing - Theory, News & General
Topic: Is VXUS really under 10 PE??
Replies: 53
Views: 7466

Re: Is VXUS really under 10 PE??

I've always been confused at the discrepancies between what's on the Vanguard pages and what I can find elsewhere. Case in point, M* thinks that VXUS has a P/E of 15.31: https://www.morningstar.com/etfs/xnas/vxus/portfolio . The M* data might be a month older, but that's one hell of a P/E drop in just a month if true.
by GammaPoint
Sat Aug 07, 2021 2:52 pm
Forum: Personal Finance (Not Investing)
Topic: Working Many Remote Jobs at the Same Time - Self Employment Ramifications
Replies: 13
Views: 4209

Re: Working Many Remote Jobs at the Same Time - Self Employment Ramifications

I don't want to advertise further so I actually just apply for 1099 jobs through the various job sites now and I have a copy of my resume with my LLC as my current job and I set the understanding with the 1099 job that I have other clients to attend to so flexibility on meeting times is a must. At least that is my general plan for scaling up. Thanks for the detail, and sounds like a reasonable way to go. With regards to adding your LLC as your current job, I assume you have a LinkedIn profile where your current job is your W2? If that's the case, do you ever deal with questions about that? I would assume that before someone hired you for a 1099 that they would google you or look on LinkedIn first. Also, do you work closely with your client...
by GammaPoint
Fri Aug 06, 2021 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: Working Many Remote Jobs at the Same Time - Self Employment Ramifications
Replies: 13
Views: 4209

Re: Working Many Remote Jobs at the Same Time - Self Employment Ramifications

Congrats on the extra side income. I had a similar situation last year where I had about $80k of income from data science consulting on top of my W2. I used this calculator to help me figure out how much employer contribution I could do: https://obliviousinvestor.com/solo-401k-contribution-calculator/. But I was fairly conservative because I didn't want to go over and so did a bit less than what the calculator suggested and then topped it off at tax filing time once I knew what the actual profits looked like after deductions and such. May I ask how you are finding your clients? With my past work I had a connection in the industry who approached me, though now that that's over I'd be interested in finding more clients if the fit were good. B...
by GammaPoint
Thu Jul 29, 2021 12:09 pm
Forum: Investing - Theory, News & General
Topic: How to understand all that's going on with GME [GameStop]
Replies: 170
Views: 23080

Re: Is Gamestop really such an important company in the US economy?

Independent George wrote: Thu Jul 29, 2021 11:58 am The most responsible option for Gamestop might be to shut down operations, sell its assets, and reimburse its shareholders.
This is exactly the kind of comment I'm trying to square with the fact that GME is higher in the fundamental index than the other companies I mentioned. No one would say the same thing about Costco, Boeing, etc., so what did GME do to get there.
by GammaPoint
Thu Jul 29, 2021 11:37 am
Forum: Investing - Theory, News & General
Topic: How to understand all that's going on with GME [GameStop]
Replies: 170
Views: 23080

Re: How to understand all that's going on with GME [GameStop]

Maybe it's my own ignorance, but the majority of the posts above replying that GME is overbought because it's a meme stock don't seem (as far as I understand) to be answering my question about why GME is higher ranked than the other list of companies I listed in FNDB, which is a fundamental index that tracks the Russell RAFI Index, which weights companies according to the average of three fundamental measures of company size including adjusted sales, retained operating cash flow and dividends plus buybacks. So it sounds like GME is large in terms of sales, operating cash flow, or dividends plus buybacks, unless it's some fluke that it's in the index. My concern is that I'm buying fundamental indexes because I don't want to follow the trend ...
by GammaPoint
Thu Jul 29, 2021 9:55 am
Forum: Investing - Theory, News & General
Topic: How to understand all that's going on with GME [GameStop]
Replies: 170
Views: 23080

Is Gamestop really such an important company in the US economy?

[Thread merged into here --admin LadyGeek] I don't really follow individual stocks or companies at all. My investments are largely all indexed, either cap-weighted or fundamental. In the fundamental index category, I hold a little FNDB. This morning I was curious about what the holdings of that looked like, and I was shocked that Gamestop is 0.47% of the overall fund! That's higher than companies like Target, Boeing, Costco, Coca Cola, ConocoPhillips, McDonalds, American Express, Lowes, Visa, Starbucks, and I could go on. I suppose this is correct, but is anyone else sort of blown away by that? I would have naively assumed that investing in a fundamental index would give me a lot more of those latter companies than it would of Gamestop. Bu...
by GammaPoint
Mon Jan 04, 2021 5:15 pm
Forum: Personal Investments
Topic: Double-checking: Can I re-use existing Roth IRA for Megabackdoor?
Replies: 3
Views: 339

Re: Double-checking: Can I re-use existing Roth IRA for Megabackdoor?

As has already been stated, yep, it just goes into your normal, existing Roth. I do this at Vanguard 3x per year.
by GammaPoint
Wed Dec 23, 2020 6:31 pm
Forum: Personal Finance (Not Investing)
Topic: Employer contribution from solo 401k -- why does it depend on other normal income?
Replies: 2
Views: 356

Employer contribution from solo 401k -- why does it depend on other normal income?

So I'm using Oblivious Investor's calculator here https://obliviousinvestor.com/solo-401k-contribution-calculator/ to compute how much employer contribution I can add to my solo 401k. My sole proprietorship income is about $70000. If I make $100000 in normal W2 earnings as well, my employer contribution is $13,345.05. If I instead only make $50000 in normal W2 earnings, then my employer contribution is less, at $13,010.93. I have two questions: (1) Oblivious' calculator calls the W2 earnings field "Amount of other earnings as an employee (without commas or dollar signs)", but I'm wondering if this is gross earnings or after other deductions (such as 401k contributions, HSA contributions, etc.). (2) What is the mechanism by which t...
by GammaPoint
Tue Dec 22, 2020 10:00 am
Forum: Personal Finance (Not Investing)
Topic: Solo 401k for side hussle when already near max of W2 401k
Replies: 2
Views: 318

Solo 401k for side hussle when already near max of W2 401k

I have a normal 401k with my W2 employer. There I contribute the maximum personal amounts, have some pre-tax matching from my employer, and also contribute after-tax (which I then roll over to a Roth in a "mega backdoor" fashion). This year I've also started up a side consulting business that's unaffiliated from my W2 employer and has generated a decent amount of income. I had been thinking that since I've almost already matched my plan limit at my W2 employer, that there wouldn't be any reason for me to open a solo 401k. However, I've come across some information that suggests that the solo 401k plan limit might be completely separate from my W2 401k. Is this true? If so, how do the contributions work? Would all of my solo 401k c...
by GammaPoint
Sun May 24, 2020 12:54 pm
Forum: Personal Investments
Topic: Buying foreign ADRs on the OTC using Vanguard/Fidelity
Replies: 15
Views: 1645

Re: Buying foreign ADRs on the OTC using Vanguard/Fidelity

alex_686 wrote: Sun May 24, 2020 12:51 pm
I would gently nudge the OP towards Level 1 & 2 ADRs, which means that they are sponsored. The foreign company is participating in the ADR, has put itself under SEC supervision, and has to issue English american-standard reporting, like annual reporting. They can not be spontaneously delisted.
Thanks for the comment, Alex. Do you know where one can see the ADR level of a given ticker? VWDRY was the first ADR ticker I mentioned for example.
by GammaPoint
Sun May 24, 2020 12:29 pm
Forum: Personal Investments
Topic: Buying foreign ADRs on the OTC using Vanguard/Fidelity
Replies: 15
Views: 1645

Re: Buying foreign ADRs on the OTC using Vanguard/Fidelity

Thank you both very much, for both the traditional and expected Boglehead warnings, but also for the additional information you have provided. While I won't go into the details of why I want to establish this position, I understand the concerns you bring up and would be sizing my holdings appropriately. Consider Orsted over Vestas. Thanks, Valuethinker. I am in fact considering Orsted as part of the small holding, as I've heard numerous good things from professional contacts in that industry broadly. Your recommendation accentuates that feeling. Do US brokers not give you dealing access on foreign markets? I believe Fidelity would let me transact directly on the foreign market, but it looks like the fee would be about $25 per transaction on...
by GammaPoint
Sat May 23, 2020 1:12 pm
Forum: Personal Investments
Topic: Buying foreign ADRs on the OTC using Vanguard/Fidelity
Replies: 15
Views: 1645

Buying foreign ADRs on the OTC using Vanguard/Fidelity

Almost all of my investments are indexed (either cap-weighted or fundamental) to broad market indices. However, I'm interested in establishing a small (~5%) portion of my AA for discretionary purchases. For a long time I've been interested in clean energy related stocks, of the type you might find in an ETF like ICLN. However, these ETFs typically have higher ERs and I'm not sure I'm willing to pay almost 50 bps for a ETF which holds fewer than 50 stocks. I'm dabbling with the idea of creating my own index, and purchasing accordingly. My own index might be as simple as the top 10 holdings in ICLN which should track closely with no ER to pay. The one hiccup I've run into is not knowing exactly what it's like as an American investor in purcha...
by GammaPoint
Thu Apr 09, 2020 11:38 am
Forum: Investing - Theory, News & General
Topic: Does history have any lessons for what the long term effects of the Fed keeping things from failing?
Replies: 10
Views: 1151

Re: Does history have any lessons for what the long term effects of the Fed keeping things from failing?

I am interested in the same question, and do not know if there are any closely-related historical analogues with which to compare. If you put a gun to my head and asked me to guess, my guess would be that in the short- and medium- term stocks are essentially without risk. The Fed can continue to print money and alleviate debts without risk of inflation. The reason inflation is not a concern is that there is so much wealth inequality in the system that extra money pumped into the system goes into asset inflation, and not more money really circulating through the economy (i.e., the poorest aren't going to be able to afford more expensive milk, and so milk will not increase in price). Since inflation will only affect financial assets, it might...
by GammaPoint
Wed Feb 27, 2019 10:11 pm
Forum: Personal Investments
Topic: $500 small balance withdrawal from 403b - just pay penalty?
Replies: 10
Views: 1045

Re: $500 small balance withdrawal from 403b - just pay penalty?

NoHeat wrote: Wed Feb 27, 2019 7:19 pm Is it possible to create a second solo 401k, possibly at another broker, and rollover the funds to that new account?
I doubt it. I believe a solo 401k is something that's more associated with the company/sole-proprietorship and not something you set up at multiple custodians. You can switch custodians, but you don't, I believe, have the option of setting of multiple accounts for the same business at multiple places.
by GammaPoint
Wed Feb 27, 2019 7:02 pm
Forum: Personal Investments
Topic: $500 small balance withdrawal from 403b - just pay penalty?
Replies: 10
Views: 1045

Re: $500 small balance withdrawal from 403b - just pay penalty?

Actually, it seems that Vanguard will let me put it in a traditional IRA, then roll it over to a Roth, despite it not being enough money to put it into any funds. It can just sit in cash before it gets transferred. So that's what we're doing now. Thanks everyone!
by GammaPoint
Wed Feb 27, 2019 4:24 pm
Forum: Personal Investments
Topic: $500 small balance withdrawal from 403b - just pay penalty?
Replies: 10
Views: 1045

Re: $500 small balance withdrawal from 403b - just pay penalty?

Makefile wrote: Wed Feb 27, 2019 2:49 pm Seconding the above; it appears Ally Bank Online Savings IRA does not have a minimum balance Then, you could immediately convert it to a Roth IRA?
You would still owe regular income tax, but I think that would get you out of the 10% penalty if rolled over within 60 days.
That's an interesting option. I didn't think of doing an IRA somewhere else with no minimums. Though I see Ally has a $50 IRA closure fee -- wonder if I would get hit with that as I roll it over to a Roth? Perhaps I'll ask chat support.